BP p.l.c. (BP) AI Stock Analysis

• Market Cap: £55.82B
• Dividend Yield: 6.86%
• Average Volume (3M): 48.81M
• Price to Earnings (P/E): 183.4
• Beta (1Y): 0.96
• Revenue Growth: -9.08%
• EPS Growth: -113.54%
• Country: UK
• Employees: 100,500
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.07
• Shares Outstanding: 15,928,443,000
• 10 Day Avg. Volume: 45,869,757
• 30 Day Avg. Volume: 48,809,173
• PEG Ratio: 0.17
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.62
• Enterprise Value/Market Cap: 2.06
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 3.98
• Enterprise Value/Ebitda: 0.90
• 1Y Price Target: £419.62
• Price Target Upside: 16.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 61 Neutral
• Price Target: ―

BP's overall stock score reflects a mixed financial performance with strong operational capabilities but concerns about profitability. The technical analysis indicates bearish momentum, while the valuation is challenged by a negative P/E ratio but supported by a high dividend yield. The earnings call provided a positive outlook with strong operational performance and strategic initiatives, balancing some of the financial concerns.

Positive Factors

Activism and Board Changes

Activism by Elliott has been a positive force, sharpening BP's focus on leverage and divestments and leading to Board changes.

Asset Divestments

BP noted strong interest for assets for sale despite market uncertainty; divestments are important to BP's ability to offer competitive distributions and healthy B/S.

Financial Strategy

BP's reset has delivered a new financial frame that estimates suggest are realistic.

Negative Factors

Leverage and Balance Sheet Risk

BP has the highest leverage in the sector, which poses a risk to its balance sheet de-gearing plans, especially under current macroeconomic conditions.

Upstream Segment Challenges

Rebuilding BP's upstream segment will take time due to the damage caused by years of under-investment and the lowest reserve life in the sector.

Valuation Concerns

BP's valuation is not considered cheap as it trades at a relative PE re-rating higher than the sector average.

BP p.l.c. Business Overview & Revenue Model

Company Description

BP p.l.c. engages in the energy business worldwide. It operates through Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Rosneft segments. It produces and trades in natural gas; offers biofuels; operates onshore and offshore wind power, and solar power generating facilities; and provides de-carbonization solutions and services, such as hydrogen and carbon capture and storage. The company is also involved in the convenience and mobility business, which manages the sale of fuels to retail customers, convenience products, aviation fuels, and Castrol lubricants; and refining and trading of oil products, as well as operation of electric vehicle charging facilities. In addition, it produces and refines oil and gas; and invests in upstream, downstream, and alternative energy companies, as well as in advanced mobility, bio and low carbon products, carbon management, digital transformation, and power and storage areas. The company was founded in 1908 and is headquartered in London, the United Kingdom.

How the Company Makes Money

BP generates revenue primarily through the exploration, extraction, and sale of oil and natural gas. This involves upstream activities such as the discovery and extraction of crude oil and natural gas, followed by downstream operations which include refining crude oil into usable products such as gasoline, diesel, and jet fuel, and distributing these products to consumers. Additionally, BP earns revenue through its petrochemicals segment, which produces chemicals used in a variety of industrial applications. The company also engages in trading activities related to oil, gas, and power markets. BP's earnings are further supplemented by its investments in renewable energy projects, including wind and solar power, as part of its efforts to diversify its energy portfolio and address climate change. Strategic partnerships and collaborations with other energy companies and technological firms also play a significant role in enhancing BP's operational capabilities and expanding its market reach.

BP p.l.c. Financial Statement Overview

Summary

BP's financial statements show strong operational capabilities and a stable balance sheet, but the net loss and slight revenue decline are concerns. Positive cash flow generation and manageable debt are positive aspects.

Income Statement

The income statement shows moderate performance for BP. Gross profit margin is healthy at approximately 15.43% for the TTM (Trailing-Twelve-Months), and the EBIT margin is about 8.40%, indicating decent operational efficiency. However, the net profit margin is negative due to a reported net loss, which is a concern. Revenue has dipped slightly from the previous year, indicating a challenging market environment.

Balance Sheet

BP's balance sheet reflects a stable equity position with a debt-to-equity ratio of 1.22 for the TTM, suggesting manageable leverage. The equity ratio is 20.69%, indicating a solid proportion of equity financing. Despite the decline in equity from previous years, the company maintains a strong asset base.

Cash Flow

The cash flow statement indicates positive free cash flow generation, albeit with a decline in free cash flow compared to prior periods. The operating cash flow to net income ratio is negative due to the net loss, but operating cash flow remains robust. BP's ability to generate substantial cash from operations is a positive indicator of liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
187.21B	189.19B	208.35B	241.39B	157.74B	105.94B
	Gross Profit
28.89B	30.24B	64.06B	55.10B	22.86B	10.18B
	EBIT
15.72B	12.85B	46.98B	44.76B	15.09B	-346.00M
	EBITDA
26.99B	27.98B	43.50B	59.47B	32.55B	14.54B
	Net Income Common Stockholders
-1.20B	381.00M	15.24B	-1.36B	7.57B	-20.73B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
34.05B	34.52B	28.59B	29.77B	30.96B	29.53B
	Total Assets
281.40B	282.23B	280.29B	288.12B	287.27B	267.65B
	Total Debt
71.13B	71.55B	63.08B	55.49B	69.79B	81.93B
	Net Debt
37.36B	37.19B	35.33B	26.30B	39.11B	52.73B
	Total Liabilities
203.44B	203.91B	194.80B	205.13B	196.83B	182.09B
	Stockholders Equity
58.22B	59.25B	70.28B	67.55B	75.46B	71.25B
Cash Flow		Free Cash Flow
10.19B	12.00B	17.75B	28.86B	12.72B	-144.00M
	Operating Cash Flow
25.12B	27.30B	32.04B	40.93B	23.61B	12.16B
	Investing Cash Flow
-12.66B	-13.25B	-14.87B	-13.71B	-5.69B	-7.86B
	Financing Cash Flow
-9.99B	-7.30B	-13.36B	-28.02B	-18.08B	3.96B

BP p.l.c. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 361.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP, the sentiment is Negative. The current price of 361.45 is below the 20-day moving average (MA) of 364.13, below the 50-day MA of 366.61, and below the 200-day MA of 389.34, indicating a bearish trend. The MACD of -1.51 indicates Negative momentum. The RSI at 48.94 is Neutral, neither overbought nor oversold. The STOCH value of 51.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BP.

BP p.l.c. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENOG	80 Outperform	£1.61B	10.89	17.50%	10.44%	-9.80%	-1.98%
ITH	78 Outperform	£2.40B	14.11	5.54%	11.65%	-16.96%	-34.52%
SHEL	77 Outperform	£146.66B	14.47	7.41%	4.35%	-4.09%	-20.79%
SEPL	77 Outperform	£1.31B	9.65	9.56%	5.04%	89.44%	540.95%
HBR	68 Neutral	£3.18B	21.62	-2.87%	10.66%	29.33%	―
BP	61 Neutral	£55.82B	183.44	-1.85%	6.86%	-9.08%	-113.54%
Sector *	57 Neutral	$7.14B	3.09	-4.49%	5.67%	0.82%	-49.15%